More experienced traders might be able to see greater benefits, but this is my understanding...
If you've taken up 3333 shares under the SPP, and met the option record date conditions, you will get the 1666 options for free. It effectively allows you to buy 1666 shares for $2 each any time between now and feb next year.
The main benefits are
- you have certainty that no matter how hard the share price runs between now and then, you have until Feb to come up with the money to buy the extra shares if you want them.
- you can trade the options, which will rise in value more quickly (percentage wise) than GDY shares if the share price rises in value. If the share price got to $3 for example, you options would most likely be fetching no less than $1 each. If they got to $4 (yes, I'm dreaming for this example) the shares would be up a further 33% but the options would be up by more like 100%, give or take.
Hope this helps,
zzzzzzD
RNE Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
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